Survey shows need to export and innovate, not export or innovate

30 Oct 2013 11:39

For Ireland to expand its economy, Irish businesses need to look further than simply capturing more customers in more markets – that was the message this morning from Pathfinder as it launched the 2013 Business Operations survey, the first of its kind in Ireland.

First survey of business operations launched by Pathfinder

For Ireland to expand its economy, Irish businesses need to look further than simply capturing more customers in more markets – that was the message this morning from Pathfinder as it launched the 2013 Business Operations survey, the first of its kind in Ireland.

The survey, which included in-depth interview with nineteen CEOs, COOs and Operations Managers as well as a questionnaire completed by over 150 businesses, showed good news for European outsourcing providers, but mixed news for those choosing to outsource.

The survey found that only 18% of businesses surveyed planned to grow through new products and innovation and 16% placed improvements in quality and service as their main focus for the year ahead.

“Since our economy operates in the global market, the central tenet of success for Ireland is adding value to the global supply chain. Enterprises can only thrive when they can develop products and services with a wide network of global value providers. Relying on lower cost and tax systems is providing a temporary relief, but it is only through higher quality of service and innovation we can create a sustainable growing economy,” said Saiid.

The key findings concerning innovation & quality were:

28% of companies said new customers were the main source of growth, 23% cited existing customers, 18% cited exports and new geography with 18% citing new products & innovation.

51% of companies stated that growth was the main focus for 2013, with 17% citing cost reduction, and 16% citing focus on improvement of quality & service.

“Perhaps the key finding of the overall survey is the worrying trend to focus exclusively on existing and new markets and customers, with no widespread efforts towards innovation or quality improvement. The short-termism approach of selling more things to more people is buying us time, but without constant reinvention of our products and services it is just a matter of time before we lose our global market share to cheaper commodity suppliers,” Saiid said.

“The wider survey results show that Ireland’s businesses are taking steps to ensure stability in the global and local markets. As the pressures of business survival is getting less we would hope to see more businesses focusing on innovation in coming years,” he added.